Andrea is completing an audit on the finance department for a medium-sized company. In her report she makes note of the fact that her audit was severely limited due to her being unable to access many of the department's documents.
Because of this and a number of other things she's discovered whilst conducting her audit, she thinks fraudulent activity might have been taking place within the department.
However, Andrea knows that it is not the business of auditors to seek out fraud.
What should she do?

• A. Detail her suspicions in the 'emphasis of matter' section in the audit report.
• B. Issue a disclaimer of opinion.
• C. There's nothing she can do - it's not the business of auditors to deal with matters concerning fraud.
• D. Report her suspicions to the company's senior management.

Which TWO of the following are NOT directly relevant to a system of professional ethics?

• A. Personal friendships
• B. Political morality
• C. Family commitments
• D. Career development
• E. Religious morality

Which of the following statements is correct in relation to the "maintenance of capital" principle?

• A. A company cannot use its share capital, and may only return it to its members with the permission of the court.
• B. In general, a company is not able to freely return its share capital to its members.
• C. A company cannot use its share capital which must be set aside as a fund for creditors.
• D. In general, a company can use its share capital for any reason whatsoever, as long as it ensures that there is sufficient remaining to meet the company's debts.

D is the chief executive of a UK-based mining company which has operations across the world and, in some countries, employs children. Child workers are only permitted to undertake certain tasks that are deemed to be safe and not physically demanding. Endorsed by his board of directors, D argues that it is better for children in poor countries to have the option of fairly paid work than to risk starvation or be forced into prostitution or criminality. A national newspaper publishes the story and gets an unprecedented number of UK voters to sign a petition for government to intervene and stop these practices. This is an example of a tension between:

• A. Corporate and societal values
• B. Personal and professional values
• C. None of the above
• D. Corporate and professional values

Being offered gifts and hospitality can give rise to threats to compliance with fundamental principles.
Which of the following statements is NOT in accordance with the CIMA Code of Ethics?

• A. The significance of threats will depend on the nature, value and intent behind the offer
• B. If a professional accountant believes that a gift of significant value is designed to influence his or her actions, then it is acceptable for him or her to accept the gift without disclosing details of the gift to colleagues or superiors
• C. Accepting a gift may create self-interest threats to objectivity
• D. If a professional accountant accepts a substantial gift, the possibility of that offer being made public could result in intimidation threats